American Equity Futures Tumble As Inflation Figures Spur Concerns On Recovery

Equity futures in the United States continued their downtrend as the higher-than-expected inflation figures raised recovery concerns.

• Futures on three indexes extended their losses — the S&P 500 by 0.7%, the Nasdaq 100 by 1.3%, and the Dow Jones Industrial Average by 0.4%.
• American consumer prices rose 4.2% year-on-year in April. Month-on-month, the headline CPI grew 0.8% and the core CPI 0.9%.
• Officials of the Federal Reserve earlier said it is still too early to look at withdrawing monetary support.
• An analyst said investors are now reviewing their positions as the market will eventually have to acknowledge that they are currently “too low.”
• The 10-year U.S. Treasury yields grew 2 basis points, Germany’s 10-year yields by one basis point, and Britain’s 10-year yield little changed at 0.84%.
• Prices of the West Texas Intermediate crude gained 1.4% to mark the longest winning streak in nearly a month, while gold futures were nearly changed.